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Pollution Liability Coverage Isnt Included in General Liability Policies. Up until the mid-1980s, general liability insurance policies included pollution coverage. In 1985, however, the ISO introduced the Absolute Pollution Exclusion.
Most liability policies will contain standard exclusions that apply to all insureds, such as pollution exclusion, employee injuries, intentional acts, faulty workmanship, and so forth.
An environmental insurance underwriter closely works with a broker, agent, or insured to assess the insureds pollution exposure risks. Based on the size of the insureds business, number of years in business, previous loss history, and other factors, the underwriter will work to provide the coverage needed.
Total Pollution Exclusion in CGL policies means that the insurer will not give payouts for bodily injuries, illness, or property damage arising from an incident of pollution (e.g. spills, leaks, seepage, and other ways of releasing harmful pollutants). However, not all CGL policies are the same.
Pollution exclusions in the CGL policy A pollutant is typically defined as any solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. Waste includes materials to be recycled, reconditioned, or reclaimed.
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Issue: Environmental insurance (also known as pollution insurance or pollution coverage) provides coverage for loss or damages resulting from unexpected releases of pollutants typically excluded in general liability and property insurance policies.
Environmental liability applies to environmental damage and the risk of damage resulting from commercial activities once it is possible to establish a causal link between the damage and the activity in question.

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